Computer processor maker AMD (NASDAQ:AMD) will be reporting earnings tomorrow afternoon. Here's what to expect.
Last quarter AMD reported revenues of $5.36 billion, down 18.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Is AMD buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting AMD's revenue to grow 2.32% year on year to $5.69 billion, slowing down from the 29% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.46%.
Looking at AMD's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Intel's revenues decreased 7.69% year on year, beating analyst estimates by 4.12% and SMART reported revenue decline of 27.7% year on year, missing analyst estimates by 15.6%. Intel traded up 7.2% on the results, SMART was down 23.6%.
Read our full analysis of Intel's results here and SMART's results here.
The fears around raising interest rates have been putting pressure on tech stocks and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.04% over the last month. AMD is down 5.44% during the same time, and is heading into the earnings with analysts' average price target of $138.7, compared to share price of $97.63.
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The author has no position in any of the stocks mentioned.